Hyundai IONIQ Forum banner

1 - 13 of 13 Posts

·
Registered
2020 Ioniq PHEV Ultimate
Joined
·
4 Posts
Discussion Starter #1
Hello to all Ioniq owners.
I’m new to the forum, I’ve recently purchased a new 2020 Ioniq PHEV, still waiting for it. So here in Ontario after you finalized all your numbers with the car salesmen it doesn’t end there, you’ll be introduce to the F&I director or manager who then will try to up sale you on additional add on like the infamous extended warranty. Now mind you this isn’t my first time purchasing a car this is our 4th vehicles purchased over the last 20 years so we know about the sales pitch the extended warranties and the rust proofing and what nots. But this time I’m completely lost in the sauce if someone out there can just make sense of these numbers for me greatly appreciated. So here are the numbers at first I was going to go with a monthly payment initially at a 84 month terms and my payment would be $510 and change the F&I director said to add an extended warranty to my monthly payment it will be $6 more and change, so $516 the hubby and I thought $6 more a month for a peace of mind for a car that’s mostly technology and not much maintenance records out there to guide you, we’ve decided it seems like the right thing to do. But then I changed my mind and wanted to do a bi-weekly payment instead, so he worked out the numbers for us do bi-weekly, now with the bi-weekly payment he said you’ll be paying $210 per month plus $12 more per payment for the extended warranty, ugh what just happened here? How did my $6 more turned into $12 more even if there is two additional payment in bi-weekly payments? Now that’s not the thing that doesn’t make sense the thing that doesn’t make sense is what he’s charging for the warranty on the invoicing. Bi-Weekly payment with out extended warranty is $210.32, remember $12 more per payment if I was to go with the extended warranty, I would assume ok $210.32 + $12 = $222.32, but my invoicing is showing bi-weekly $232 per payment so I’m completely oblivious to where is this extra $10 coming from. Multiplying $12 by $182 payments it comes to $2184 but my invoicing is $3318, the Hyundai Canadian website price for the premium plus extended warranty for 8yrs is only $2795, so not only does his number not makes sense, it’s more then what Hyundai Canada is selling it for, sorry I forgot to mention the price he gave us was supposed to be “the employee pricing”. Can someone please tell me if there’s something shady going on here or am I just completely ignorant and lost and no longer know how to do math anymore? His only explanation was you have two additional payments when you do bi-weekly payment, I’m aware of that but it doesn’t explain how I ended up paying more and why is it actually $22 more each month and why is your price more then Hyundai Canada. His answer is I’ll look into it for you and you are not obligated to buy the extended warranty but I highly do recommend you to, for that peace of mind since this car is all technology and electrical components are very expensive to fix out of pocket. Should I just opt out if he’s not willing to lower the price to at least advertised? I do want that peace of mind but the numbers are just not making any sense to me. In need of some advice picking up the car in 3 days. Thank you all for reading my extremely long post. BTW if you divide $3318 by 182 payment it’s $18.23, so nothing is adding up for me.
 

·
Registered
Joined
·
71 Posts
Welcome to the forum Kimiko, Sometimes many of the forum topics don't get checked often by the usual participants. If you don't get any other responses, try reposing to the General or PHEV topics. Several members from Canada are active there and can give good advice on service and cost in you area.
Congratulations on purchasing a new Hyundai PHEV I believe your are likely to be very satisfied as so many of us Fan Boys are.
To your question of Dealer(F&I Mgr scam) Extended Warranty; I obviously don't know the exact terms and coverage of what you are being offered. My experience and general knowledge of the extended warranty programs, is they are a financial bonus for the F&I Mgr, and provide little value to the consumer. Most I have reviewed via spam mail/text/calls have all kinds of exceptions and deductibles for any service. Considering Hyundai's exceptional warranty you have bumper to bumper coverage of "technology & electrical components" for most of your payment terms so are paying again for what you have included in the new vehicle warranty. After that wonder what the cost and terms would turn out to be?
Also don't forget to add your vehicle and generic location info in your signature to facilitate more accurate answers to any future questions.
 

·
Registered
Joined
·
777 Posts
the Hyundai Canadian website price for the premium plus extended warranty for 8yrs is only $2795, so not only does his number not makes sense, it’s more then what Hyundai Canada is selling it for, sorry I forgot to mention the price he gave us was supposed to be “the employee pricing”. Can someone please tell me if there’s something shady going on here or am I just completely ignorant and lost and no longer know how to do math anymore?
Every time I've purchased a car the final number has never made sense, and in the end seemed to have no bearing on what the sales guy and I had initially discussed. I hate those chats with the Finance Manager! That said, let's run some basic math on this and see what we get for comparison:

$2,795 * 1.13 (to add the 13% HST) is $3,158.35. If you amortize that over 5 years at 2%, then according to https://www.calculator.net/amortization-calculator.html it comes to 60 monthly payments of $55.36 adding $163.18 in interest for a total of $3,321.53. That's close to the $3,318.

Of course if he's invoicing you $3,318 before factoring in the interest and amortization, well, that's an issue worth checking into!
 

·
Registered
Joined
·
777 Posts
Notes to the above (figured I'd make them a separate post):

I've always taken most of the extra crap that the finance manager has thrown in. When I got the Genesis Coupe back in 2011 adding the 8/160k warranty plus the rust, paint, and fabric protector netted me a PS-3 and an Xbox 360 that the dealer threw in, so there was that at least. The products they use probably aren't the best, but if they offer me rust-through panel repairs for life just for accepting whatever porpoise hoarc they put on the car before I take delivery, well that seems to be worth it for me.

The electronic rust protection modules are a total sham. Yes, galvanic rust protection works on ships, but with a ship the water is there to complete the circuit. A car is a floating electrical system with respect to ground, and there's nothing some box with an LED on it connected to your battery 24/7 is going to do about that. Again though, if they'll give me free rust-through panel replacements for life just for letting them bolt that sham gizmo on there, I say bring it. Interestingly, the Finance Manager told me that Hyundai doesn't allow them to offer the electronic rust through protection on the Ioniq because of possible conflicts with the EV system. I think that was misdirection, I'm sure that what they're really worried about is 12V battery run-down since an EV has a much smaller 12V battery in it than a fossil car.
 

·
Registered
2020 Ioniq PHEV Ultimate
Joined
·
4 Posts
Discussion Starter #5
Welcome to the forum Kimiko, Sometimes many of the forum topics don't get checked often by the usual participants. If you don't get any other responses, try reposing to the General or PHEV topics. Several members from Canada are active there and can give good advice on service and cost in you area.
Congratulations on purchasing a new Hyundai PHEV I believe your are likely to be very satisfied as so many of us Fan Boys are.
To your question of Dealer(F&I Mgr scam) Extended Warranty; I obviously don't know the exact terms and coverage of what you are being offered. My experience and general knowledge of the extended warranty programs, is they are a financial bonus for the F&I Mgr, and provide little value to the consumer. Most I have reviewed via spam mail/text/calls have all kinds of exceptions and deductibles for any service. Considering Hyundai's exceptional warranty you have bumper to bumper coverage of "technology & electrical components" for most of your payment terms so are paying again for what you have included in the new vehicle warranty. After that wonder what the cost and terms would turn out to be?
Also don't forget to add your vehicle and generic location info in your signature to facilitate more accurate answers to any future questions.
Hi, DocMiller,
Thank for welcoming to the Ioniq forum/family. I’ve added in my vehicle model and and my location. I definitely 100% agreed that it’s a more of an money grab for the dealerships. What is really not making sense is that his quoted price to us was the so call “employee pricing” is way more then the advertised price. And he has no explanation to it, responding with he needs look into it to get me of his back. I honestly don’t know how many days he needs to “look into it” (it’s been 3 days since he need to look into it.)
 

·
Registered
2020 Ioniq PHEV Ultimate
Joined
·
4 Posts
Discussion Starter #6
Every time I've purchased a car the final number has never made sense, and in the end seemed to have no bearing on what the sales guy and I had initially discussed. I hate those chats with the Finance Manager! That said, let's run some basic math on this and see what we get for comparison:

$2,795 * 1.13 (to add the 13% HST) is $3,158.35. If you amortize that over 5 years at 2%, then according to https://www.calculator.net/amortization-calculator.html it comes to 60 monthly payments of $55.36 adding $163.18 in interest for a total of $3,321.53. That's close to the $3,318.

Of course if he's invoicing you $3,318 before factoring in the interest and amortization, well, that's an issue worth checking into!
Thank you so much for your quick math KevinT. Let me just make some clarifications. $2795 is the cost for 8yrs premium plus extended warranty advertised on Hyundai Canada website, the price of $3318 is the F&I Director’s price before 13%HST from the dealer. My bi-weekly payment is $210.32 without warranty for 182 payments, according to him for $12 more I can add in the warranty and my payments will be $232.32, where is this extra $10 coming from and why does the numbers not add up? And if I’m paying $12 more why is my final price $3318? What is shady to me is there’s no clear explanation on his end and I haven’t heard from him in 3 days.
 

·
Registered
Joined
·
777 Posts
I agree, that's pretty shady. Any chance you could go to another dealer and request the same car/options to see what their finance guy comes back with? If you're in the GTA that should be pretty easy to do, if you're in a smaller city that may involve significant travel. Although I'm from Kitchener, my previous Hyundai was actually bought from Nav Bhatia in Mississauga because they treated me so much better than the local dealers during the research and test driving phase.

Edit to add: I'm also happy to report that Schleuter Hyundai in Waterloo did a great job for me when I bought the IONIQ. They really up'd their game from my 2011 experience.
 

·
Registered
2020 Ioniq PHEV Ultimate
Joined
·
4 Posts
Discussion Starter #8
I agree, that's pretty shady. Any chance you could go to another dealer and request the same car/options to see what their finance guy comes back with? If you're in the GTA that should be pretty easy to do, if you're in a smaller city that may involve significant travel. Although I'm from Kitchener, my previous Hyundai was actually bought from Nav Bhatia in Mississauga because they treated me so much better than the local dealers during the research and test driving phase.

Edit to add: I'm also happy to report that Schleuter Hyundai in Waterloo did a great job for me when I bought the IONIQ. They really up'd their game from my 2011 experience.
KevinT,
I’ll be picking up my also in the colour polar white 2020 Ioniq PHEV this Thursday, isn’t it kind of too late to price shop now? I’m gonna say I got an pretty decent price deduction off the car $2500 off plus there’s a $2500 government rebate and he’s throwing in the premium all weather front and rear mats in at no charge. But with the Finance Director being kind of shady on his numbers, makes me nervous to what he’ll offer me on Thursday at pickup, there’s no way he thinking that he can still sell us the warranty for $3318 especially after I voice out and question him. I’ll update you on Thursday evening on how things goes, all that stress aside super excited to be getting my Ioniq PHEV soon!
 

·
Registered
Joined
·
777 Posts
Fair enough @Kimiko , I'm sure you'll love the car and it is nice that they threw in the premium mats for you.
 
  • Like
Reactions: Kimiko

·
Registered
Joined
·
120 Posts
Consumer Reports discourages purchasing extended warranties on vehicles. See article below. Their argument is that, on average, the claims made by consumers under the extended warranty program are far less than the the cost of the extended warranty. Of course there are exceptions where an expensive repair is needed and is covered under extended warranty, but on average, based on their survey done in 2013, the cost of the warranty is more than the benefit it provides. One can argue that the complexity and repair cost of vehicles has certainly increased in the last 7 years, but then I'm sure the cost of the extended warranty has increased as well. Insurance companies are well aware of this and are not in the business of losing money.

 

·
Registered
2020 Ioniq EV Ultimate
Joined
·
10 Posts
We said nope to all the extra crap the finance manager made us drive TWO HOURS to try and sell us in person because it couldn't possibly be done by phone/email in a global pandemic...
Our car insurance through Cooperators included 5 years of depreciation protection and all the other warranty bs for paint chips or whatever else wasn't worth the additional cost.
 

·
Registered
Joined
·
3,248 Posts
Consumer Reports discourages purchasing extended warranties on vehicles. See article below. Their argument is that, on average, the claims made by consumers under the extended warranty program are far less than the the cost of the extended warranty. Of course there are exceptions where an expensive repair is needed and is covered under extended warranty, but on average, based on their survey done in 2013, the cost of the warranty is more than the benefit it provides. One can argue that the complexity and repair cost of vehicles has certainly increased in the last 7 years, but then I'm sure the cost of the extended warranty has increased as well. Insurance companies are well aware of this and are not in the business of losing money.
While I agree that most extended warranties are a rip off (AppleCare excepted), all insurance is designed to show a profit. How much depends on state regulation. I don't believe extended warranties are regulated in any state. No idea about Canada.
 

·
Registered
Joined
·
777 Posts
Consumer Reports discourages purchasing extended warranties on vehicles. See article below.

<snip>

From the article,

Instead, Ramsey recommends that owners create an emergency fund for repairs that they can tap into when needed. And if that money isn’t needed for repairs, it can go toward the purchase of the next car.
Of course that's the best advice for cars, pets, and houses, but the reality is that very few of us have the self-discipline to pull it off. For the rest of us, there's the warranty / insurance.
 
  • Like
Reactions: chunga68
1 - 13 of 13 Posts
Top